Correlation Between Auxly Cannabis and Northern Data
Can any of the company-specific risk be diversified away by investing in both Auxly Cannabis and Northern Data at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Auxly Cannabis and Northern Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auxly Cannabis Group and Northern Data AG, you can compare the effects of market volatilities on Auxly Cannabis and Northern Data and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Auxly Cannabis with a short position of Northern Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxly Cannabis and Northern Data.
Diversification Opportunities for Auxly Cannabis and Northern Data
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auxly and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Auxly Cannabis Group and Northern Data AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Data AG and Auxly Cannabis is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Auxly Cannabis Group are associated (or correlated) with Northern Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Data AG has no effect on the direction of Auxly Cannabis i.e., Auxly Cannabis and Northern Data go up and down completely randomly.
Pair Corralation between Auxly Cannabis and Northern Data
Assuming the 90 days horizon Auxly Cannabis Group is expected to generate 13.89 times more return on investment than Northern Data. However, Auxly Cannabis is 13.89 times more volatile than Northern Data AG. It trades about 0.24 of its potential returns per unit of risk. Northern Data AG is currently generating about 0.22 per unit of risk. If you would invest 2.00 in Auxly Cannabis Group on October 9, 2024 and sell it today you would earn a total of 0.24 from holding Auxly Cannabis Group or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auxly Cannabis Group vs. Northern Data AG
Performance |
| Timeline |
| Auxly Cannabis Group |
| Northern Data AG |
Auxly Cannabis and Northern Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auxly Cannabis and Northern Data
The main advantage of trading using opposite Auxly Cannabis and Northern Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auxly Cannabis position performs unexpectedly, Northern Data can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northern Data will offset losses from the drop in Northern Data's long position.| Auxly Cannabis vs. Ipsen SA | Auxly Cannabis vs. Dr Reddys Laboratories | Auxly Cannabis vs. Swedish Orphan Biovitrum | Auxly Cannabis vs. Superior Plus Corp |
| Northern Data vs. BANK MANDIRI | Northern Data vs. PT Bank Mandiri | Northern Data vs. BANK MANDIRI | Northern Data vs. BANK MANDIRI |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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